Why do tax rates vary so much across countries? We study the role of altruism and ethnic fragmentation in redistribution. The government of a two-party democracy is elected by altruistic voters and decides on a redistributive income tax. Social identification directs voters' altruism toward...

Women devote more time to housework than men do. Men devote more time to an employment than women do. In the present paper we study the role of identity in the gender gap in the allocation of time between an employment and housework. We develop a model consisting of two types of individuals, men...

In the present paper we uncover a novel mechanism through which a minority can gain a disproportionate power in a perfectly functioning democracy. In our model, a government elected by majority within a two party democracy, decides on a unique redistributive instrument, the tax rate. We show...